Electricity bill going up

Wisconsin State Roundup

A controversial proposal for a new electricity transmission line in northern
Wisconsin is sparking more debate after planners announced that the project's
cost would be more than double the original estimate.

The original estimate for the 210-mile Arrowhead line, which runs from
Duluth, Minn., to Wausau, Wis., was $165 million. The new estimate pegs
the total at just under $400 million and includes tens of millions for
various environmental safeguards. Both the original and revised cost estimates
were done by the two utility companies involved in the project, Wisconsin
Public Service Corp. and Minnesota Power.

The project will go back to the state Public Utilities Commission, triggered
by a stipulation in the original plan's approval that any cost overrun
of 10 percent or more would be reviewed by the PUC. Environmental groups
are reportedly using the cost increase as grounds to reopen debate on
the entire project, which they have vehemently opposed.

The additional items in the new estimate would also push back the construction
timeline by one year, to 2005. If completed at the new cost, Wisconsin
residents will pay 90 percent of the final bill, with Minnesota ratepayers
picking up the remainder. Despite the project's increased cost, if approved,
Wisconsin residents and businesses would see just a 1 percent increase
in their monthly utility bills.